Tuesday, May 20, 2014

Feds approve Colorado consolidation plan intended to reduce rural health premiums

In a move that could lead to changes in other states, the federal government "approved Colorado's plan to consolidate several geographic rating areas used to determine health insurance premiums, which officials hope will reduce consumer costs in mountain and rural areas," reports The Denver Post. Under federal health reform Colorado "was divided into geographic rating areas based on medical-care costs, which in turn determined a range of premiums on the state health exchange. Colorado has some of the nation's highest premiums.

The new plan reduces the number of rating areas from 11 to nine, combining four rural areas into two larger rating areas, while retaining seven urban rating areas, the Post writes. "Two Western Slope mountain rating areas consisting of 21 counties, including pricey mountain resorts, will be combined into one new rating area. Also combined would be two Eastern Plains rating areas consisting of 26 counties." 

"Insurance division officials have said consolidating the higher health cost regions into larger rating areas will spread the risks and the costs of providing health care more equitably over a larger population," the Post writes. (Read more)

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